Legislation to Protect Students from Federal Cuts to Loan Programs Advances

Senate Priority Bill is Voted out of the Higher Education Committee

HARTFORD — Today, Senate President Martin Looney, Senate Majority Leader Bob Duff and Senate Chair of the Higher Education and Employment Advancement Committee State Senator Derek Slap applaud committee passage of legislation that will protect Connecticut graduate students from cuts to federal loan programs.

Senate Bill 8 establishes the Supplemental Graduate Student Loan Program under the Connecticut Higher Education Supplemental Loan Authority (CHESLA) which will allow Connecticut graduate students to access lower-interest, state-subsidized student loans. The legislation includes $10 million in bonding in FY 27 and $20 million in FY 28, while also increasing CHESLA’s bonding authority.

The legislation passed unanimously and will head next to the Senate floor for consideration.

“Federal student loans have long been a safe, low-interest borrowing option for students, particularly those from low-income backgrounds. The Trump administration’s actions will either push these students towards predatory, high-interest private loan servicers, or prevent them from entering their desired fields at all. This legislation will give Connecticut students another option – a state-backed loan program that allows them to continue their education without being saddled with high-interest student debt,” said Senate President Martin Looney.

“When the Trump regime attempts to make college less affordable and make it harder for young, passionate folks to pursue degrees in education, nursing and social work, Connecticut steps up,” said Senate Majority Leader Bob Duff. “The White House may consider these degrees ‘non-professional’, but here in Connecticut we know that teachers, nurses and social workers do critical work to support our communities and we’ve got their back.”

“Connecticut believes in the power of education and the importance of public service and this legislation proves that,” said State Senator Derek Slap. “While Washington D.C. cuts federal graduate loan programs and makes it harder for nurses, teachers and social workers to access loans, we are creating another avenue for Connecticut students to pursue these important careers, join the state workforce and avoid high-interest student loan debt.”

For 20 years, American students have used the federal GradPLUS loan program to access lower-interest loans to bridge financial gaps while paying for their graduate studies. In 2025, the Trump administration cut the program and reclassified nursing, education and social work degrees as “non-professional”, significantly lowering borrowing limits for students pursuing these degrees. Senate Bill 8 will create a state-funded borrowing option for students, thereby investing in workforce development and offering Connecticut students a pathway to affordable higher education without relying on high-interest private loan servicers.

FOR IMMEDIATE RELEASE

Contact: Kevin Coughlin | kevin.coughlin@cga.ct.gov | 203-710-0193